Attached is a note by Randy Watts, Executive Vice President and Chief Investment Strategist, and Kenley Scott, Global Sector Strategist, at William O’Neil + Co. on the current state of the market.
Key points:
- Indices consolidating with the leading Nasdaq and microcap index pulling back more sharply.
- Several divergences occurring:
- Bullishness remains high, reaching ~60% of advisors despite the pullback. Bearishness is very low at ~15% which is close to historic lows.
- The percentage of stocks above their 30-week moving average around 50–55%, down from a peak of 75% in September. It did not come close to highs again despite recent market highs.
